ASIC buys crypto firms three more months of "please don't sue us" 🙃

Australia's financial regulator has extended its no-action relief for digital asset companies pursuing licensing under updated guidance, pushing the deadline to Sept. 30 from the previous June 30 cutoff. The Australian Securities and Investments Commission (ASIC) said the temporary protection from enforcement will apply to businesses seeking an Australian Financial Services (AFS) license, as well as firms that may require market or clearing and settlement authorizations. ASIC also broadened the relief to cover digital asset businesses operating through authorized representatives or intermediary arrangements with licensed entities, expanding the pool of companies eligible for the transition window.

The regulator said it has received about 30 license applications since updating its digital asset guidance in October 2025. ASIC introduced the no-action position after revising Information Sheet 225 (INFO 225), which clarifies how existing financial services laws apply to digital assets and states that many digital asset products are financial products under current law, requiring providers to hold an AFS licence. That interpretation was reinforced by the High Court's Block Earner ruling, which found that the company's former crypto yield product was a financial product under the Corporations Act.

The temporary relief is separate from Australia's Digital Asset Framework, which passed Parliament in April and is scheduled to commence on April 9, 2027. That statute will bring digital asset platforms and tokenized custody platforms under the country's financial services licensing regime. ASIC has cautioned that some firms licensed under the current guidance may need additional authorizations once the new framework takes effect. "Many digital asset firms that apply for a licence based on INFO 225 will also need to add DAP and TCP authorisations to their licence once that regime commences," ASIC said in a May announcement.